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Way Out Ltd designs and manufactures casual clothing and accessories - HSC - SSCE Business Studies - Question 26 - 2007 - Paper 1
Question 26
Way Out Ltd designs and manufactures casual clothing and accessories. In 2007 the business ran an expensive marketing campaign advertising in teen magazines. Market... show full transcript
Worked Solution & Example Answer:Way Out Ltd designs and manufactures casual clothing and accessories - HSC - SSCE Business Studies - Question 26 - 2007 - Paper 1
Step 1
Describe ONE appropriate marketing promotion strategy for Way Out Ltd
Answer
One effective marketing promotion strategy for Way Out Ltd is to utilize social media advertising combined with influencer partnerships. By targeting platforms frequented by the brand's demographic, such as Instagram and TikTok, the company can create visually engaging content that showcases their products. Collaborating with influencers who resonate with the target audience can enhance brand visibility and credibility. This strategy leverages user-generated content and encourages sharing, ultimately driving more traffic to their sales channels.
Step 2
Recommend ONE strategy to improve employment relations
Answer
To enhance employment relations, Way Out Ltd should implement a comprehensive employee feedback system. This system can include regular surveys to gauge employee satisfaction and areas for improvement. By actively seeking employee input and addressing their concerns, the company demonstrates its commitment to their well-being, thereby fostering a more positive work environment. This approach will likely improve morale and reduce absenteeism.
Step 3
ONE way to measure the effectiveness of employment relations
Answer
A suitable method for measuring the effectiveness of employment relations is through the use of employee turnover rates and retention statistics. By monitoring changes in these metrics before and after implementing the employee feedback system, the company can assess whether employee satisfaction has improved. Additionally, conducting exit interviews can provide qualitative data on why employees leave, yielding insights into the effectiveness of the employment relations strategies.
Step 4
Analyze cash flow management and profitability management for effective financial planning
Answer
Effective cash flow management and profitability management are critical for Way Out Ltd to achieve its financial objectives. The company should track cash inflows and outflows meticulously to avoid liquidity issues. This can be done by maintaining a detailed cash flow forecast and implementing a stricter credit control policy to reduce excessive credit sales.
Regarding profitability management, it’s essential to analyze product lines to identify high-margin items to promote. Understanding the cost structure allows the company to make informed pricing decisions, ensuring that pricing strategies align with market demand and competitive dynamics. Regular reviews of these parameters will enable Way Out Ltd to adapt quickly to changing market conditions and maintain financial health.